Fiscal Year
2016 REPORT
Marking 15 years of supporting economic growth in Western Maine.
2016 REPORT Welcome
Welcome, friends, to our 2016 Annual Report! As Community Concepts Finance Corporation begins its 16th year, it is well positioned to provide capital to
people becoming new homeowners who are properly prepared to handle all that being a homeowner involves.
individuals looking to start a business, to businesses
We are planning to grow our affordable mortgage
that are not yet ready for conventional financing, and
financing for families who are shut out of conventional
to provide gap financing together with our lending
mortgage financing due to a range of factors.
partners.
On the Economic Development side, we provided
We have built strong partnerships with the financial
hundreds of hours of economic development activities
institutions in our communities while providing unique
throughout Oxford County which furthered our
financial products tailored to the needs of those who
understanding of the needs of those communities and
struggle to acquire a traditional loan.
the resources we can provide or coordinate to help them move forward.
Our programs are serving more communities, families, individuals and businesses than ever before. Meanwhile, we have advanced key strategic initiatives that will
We Believe all Individuals, Families, and Communities can be Financially Secure.
position us to continue to grow. On the business lending side, I am pleased to report that we had a 41% increase in business loans over 2015 with 50 loans closed and $2.8 million in lending! We are also proud of the 158 jobs we were able to help create or retain in our communities this year. On the residential side, we had a 29% increase in Homebuyer Education participants, resulting in 158
Many
of
our
services
are
entirely paid for by the grants and donations we receive from numerous sources, while others are offered on a sliding scale. We strive to be the best place to start
a conversation even if a person may be able to work within the traditional financial system. In the pages that follow, you will read about a few of the businesses we assisted, mortgages we have made, the folks we have counseled and the impacts we have had with the individuals, families, businesses and communities we serve.
CCFC CEO Dennis Lajoie Board of Directors CHAIRMAN: Lincoln Jeffers, Director of Economic & Community Development for the City of Lewiston VICE-CHAIR: Tara Davis, Registered Client Associate with Northeast Retirement Solutions SECRETARY: Peter Chapman, President of Paris Farmers Union MEMBER: Mark Samson, CEO of Rainbow Federal Credit Union MEMBER: Travis Frautten, VP Commercial Loan Officer at Androscoggin Bank 2
Economic Development
Rumford
CCFC Aids Effort to Spur Growth through Rumford Historic District Designation Throughout
2016,
CCFC
worked
Historic
District
designation,
CCFC
values
are
generally
expected
to
alongside a local group to designate
helped determine the town’s eligibility
increase under the designation. Historic
downtown Rumford a Historic District
and organized a public meeting to
designation could also create a visitor
by the National Trust for Historic
explain the potential positive impacts
attraction to the Rumford Falls area,
Preservation, a move aimed at spurring
of
up
which would help ensure the success
economic development in the heart of
misconceptions about the move. CCFC
of a new hotel being built close to
the Great Falls area.
also aided the effort to draw up the
downtown Rumford.
Helping towns create historic districts is just one strategy employed by CCFC to
the
designation
and
clear
nomination papers and document the buildings in the area.
create new opportunities for towns and
In April 2017, the National Trust
businesses in Oxford County. CCFC’s
for Historic Preservation added
economic development efforts include
downtown Rumford to its list
grant making, professional consultation
of
and direct participation in projects such
CCFC will now pursue additional
as historical designations.
financial
“I see our role as a facilitator and connector to resources to help advance
designated
historic
incentives
to
sites. help
revitalize downtown with the boost from the new designation.
the priorities of local communities,”
The potential economic development
CCFC’s
impacts of the designation are wide-
Economic
Development
Program Director Mia Purcell said. In its effort to realize the Rumford
ranging. Contributing property owners would receive tax credits for pre-
“The
historic
designation
has
the
possibility to be very significant,” Purcell said. “We are hoping this will spark more development.”
approved renovations, and property 3
Business Lending
Auburn CCFC’s Business Lending Booming with Positive Results Enka and Genti Suli will be celebrating
The
their fifth anniversary in January 2017 at
the cash saved from
84 Court Pizza & Restaurante in Auburn,
the down payment to
and the occasion will be particularly
renovate the interior, demonstrating
“There is very good communication
sweet, since they are the new owners of
one major benefit of financial assistance
between the banks and Community
the building that houses their business.
from CCFC. They are planning to
Concepts. It really helps a small business
lay long-lasting ceramic tiles in the
like us,” Mr. Suli said. “They helped us
downstairs and paint and make other
tremendously, actually, with purchasing
updates to the upstairs dining room.
the building.”
for the previous 5 years, guiding them
CCFC greatly exceeded its fiscal year
Ownership of the building is a major
through a process that included Norway
2016 goals throughout its business
milestone in the couple’s quest to create
Savings Bank and the Finance Authority
lending services, showing continued
a successful business of their own.
of Maine’s State Small Business Credit
growth and measurable impact. CCFC
Initiative.
helped create 158 new jobs through its
Community Corporation
Concepts assisted
the
Finance Sulis
in
purchasing the building they had leased
CCFC provided 20 percent of the required down payment, allowing the Sulis to hold on to some of their cash. “It was a good savings for us, because we did not have to put all the money down that they needed for purchase of the building,” Mr. Suli said.
Sulis
are
using ENKA AND GENTI SULI
strategic business lending, over double its initial goal, and provided technical
Dollar amount of loans closed Technical Assistance - total hours Jobs Created/Retained 4
we managed to get it through some very tough times,” Mr. Suli said.
assistance to 133 clients, nearly double
The Sulis emphasized the inherent
the expected rate.
difficulty of the restaurant business,
CCFC was named Top Performing Microlender
for
the
second
year
in a row by the U.S. Small Business Administration.
with long hours and the need for round the clock attention to it. But the fact of owning the building that houses the restaurant has a made a key difference. “You still have to work, because that’s
FY15
FY16
% Change
31
50
61.29%
it’s going to go in your pocket, because
$1,682,255
$2,841,320
68.90%
it’s your building, it’s your property,”
1,730
1,686
-2.54%
Mrs. Suli said.
108
158
46.30%
Business Lending Loans Closed
“It was very hard in the beginning, but
how it is, but at least the most important is that we are working for ourselves, and
Tilton’s Market Kept Alive through Unique Partnership A bustling small town market known
hold
simply as Tilton’s has been in the heart
note.
of the Buckfield community since 1939. A
family-run,
community-oriented
place to purchase essential items, meet your neighbors and discuss local events, Tilton’s Market received a new lease on life thanks to a partnership with a retired school teacher and Community Concepts Finance Corporation. “There was an opportunity for someone else to be the owner of Tilton’s Market, and I said to my husband, ‘What do you think about this pipe dream?’ And we laughed, and then we talked about it,” said owner Sandra Fickett. “Community Concepts offered us not only financial support but the intellectual support I needed as a new business owner.” Ms. Fickett worked with CCFC and the interim owners of the market, who had already begun to restructure purchasing relationships and increase the market’s revenue. Due to Ms. Fickett’s limited direct experience in running a business, CCFC
negotiated
a
three-party
agreement in which the seller would
a
Business Lending
subordinated
CCFC provided technical assistance and required the
seller
available
to to
remain provide
guidance to Ms. Fickett. CCFC financed the real estate
in
2014,
with
funding through the USDA Intermediary
ages 16 to 76, who are all members of the
Relending Program. After two years
community. A person with disabilities is
of
positive
among the employees, and the market
community feedback, in 2016, CCFC
also does outreach on job skills training
approved a cash-flow refinance to
with the local school for other young
take out the remainder of the seller’s
people with disabilities.
sustained
growth
and
subordinate debt with some of the financing coming through the U.S. Small Business
Administration’s
microloan
program. “After a concerted effort by members of the community and CCFC staff, a family run business founded at the tail end of the Great Depression gets a new family and a second chance,” said Zachary Maher, loan officer at CCFC.
“From the very beginning, Community Concepts has been there to make our dream come true,” said Ms. Fickett. People who have frequented the market for decades expressed their gratitude to Sandra for stepping forward to take it over. They also noted her innovations in providing a wider selection of products and creating a community space in their town.
The market employs 18 people from
Buckfield MS. FICKETT
5
Total Portfolio
$8,224,669
Housing Loans, $3,260,000
Business Loans, $4,964,668
Community Concepts Finance Corp. Audited Statement of Financial Position FY15
FY16
Assets
TOTAL ASSETS
$3,929,316 $$6,072,933 $10,002,249
$2,366,544 $25,304 $8,996,653 $11,388,501
TOTAL LIABILITIES
$1,974,204 $5,816,608 $7,790,812
$2,395,998 $6,117,131 $8,513,129
$2,211,437
$2,875,372
$10,002,249
$11,388,501
Current Assets Property & Equipment Other Assets
Liabilities Current Liabilities Non Current Liabilities
Net Assets TOTAL LIABILITIES & NET ASSETS FY15 CPA RKO FY16 CPA BerryDunn 6
Residen,al Loans by Funding Source
Residential Loans by Funding Source
19% Residen5al Loans by Funding Source 1%
$1,868,561.65 57%
81%
5%
3%
Grants Borrowed
4% 11%
$1,391,439.27 43%
Business Loans Deployed by Funding Source
Borrowed
Grants
1%
5%
3%
4% 11%
76%
76%
SBA USDA Borrowed Grants FAME SBA USDA Founda<ons Borrowed Grants FAME Founda<ons
Business loans Deployed by Funding Source Business loans Deployed by Funding Source
7
Residential Lending
Lewiston
MELISSA DUNN
Residential Lending Offers Individuals a Chance to Afford Safe, Healthy Housing Providing home loans is one of the
Ms.
a
arm is working to finance more and
most rewarding aspects of the work
homeowner but couldn’t qualify for a
more people like Dunn who are strong
at
mortgage from a bank.
candidates for home loans but do not
Community
Concepts
Finance
Corporation (CCFC), because it impacts people on an individual basis in a way that visibly changes their lives.
Dunn
wanted
to
become
“I just didn’t have any credit, so conventional
lending
wasn’t
qualify under conventional standards.
really
“Home loan activity fell short of our
an option for me,” Dunn said. Lack of
goals for FY16 due to a lack of capital
Melissa Dunn is a case in point. Born
savings was also an issue. “Even though
resources. But I am looking ahead to
and raised in Lewiston, Ms. Dunn
I have invested a lot in my community,
2017 with enthusiasm, knowing that we
is dedicating her life to helping the
you don’t do it for pay. That’s the bottom
have secured additional resources from
city’s residents. Dunn is a community
line.”
the Federal Home Loan Bank of Boston,”
organizer who does outreach and support work for case managers and direct services.
CCFC worked with Ms. Dunn to create a path to home ownership that fit her
loan officer.
particular circumstances
CCFC’s work to help finance quality,
and where she wished
affordable
to live. She first went
important to Ms. Dunn, who has often
through the Homebuyer
helped others with housing issues
Education program. CCFC
in Lewiston, such as lead poisoning
then connected her with
dangers, severe pest problems, and lack
the City of Lewiston’s
of heat and hot water.
savings match program that helped her quickly obtain a down payment. CCFC’s residential lending 8
said Deb Trenoweth, CCFC residential
housing
was
especially
“I am my sole provider, and it’s really difficult to get healthy and safe housing with restricted income,” Dunn said. The process yielded results. “I never
thought in a million years that I would
Concepts, and she feels continually
be able to be a homeowner,” Dunn said.
supported by the organizations.
“I love my home! But it’s a lot of work - I’m painting, I have a lot of projects
“Community Concepts really worked
CCFC is licensed under the Nationwide Mortgage Licensing System, NMLS #973575.
with me to make sure I am able to
Deb Trenoweth is individually
maintain and keep my home. They really
licensed under the Nationwide
Together, Community Concepts and
want to see people succeed,” Dunn
Mortgage Licensing System,
CCFC are continuing to provide support
said. “I know if there’s ever a time, or
NMLS #380375.
for Ms. Dunn as she takes on her new
if I’m ever in a predicament, I can just
role as a homeowner. She has taken
outreach to folks, and they’ll be there to
advantage of the financial counseling
help support me.”
going on, and I work a full time job.”
services
provided
by
Community
FY15
FY16
% Change
Residential Lending Loans Closed Dollar amount of loans closed Loans Packaged/Brokered Dollar amount of loans packaged/brokered
9
7
-22.22%
$337, 380
$124,500
-63.1%
16
0
0.00%
$560, 930
0
0.00% 9
Foreclosure Counseling
Lewiston Foreclosure Counseling Helps in the Most Difficult Times
RONALD OUELLETTE
For 27 years, Lewiston nurse Ronald
everything for me. She communicated
“The judge said he was going to give
Ouellette owned and operated a number
with the banks and tried to negotiate,”
me 30 days to try to sell the house.
of boarding homes for elderly people
Mr. Ouellette said.
He wasn’t going to foreclose on me,
with dementia. He loved his work, and it helped shape his identity.
Mr. Ouellette’s case was typical of the kind of situation Baril encounters
because he respected what I did in the past with the elderly,” Ouellette said.
Then a tragic accident three years ago
in her work, where people want to
Baril is a fixture in court when foreclosure
set off a chain of negative events that
remain in their homes despite issues
cases are on the docket, showing up to
upended his life.
with affordability. Her job begins with
provide guidance to whomever may
a fact-finding mission to understand
want to meet with her.
“I got into a major car accident, and I developed seizures,” Ouellette said. “I wasn’t able to concentrate on what was going on with the residents and
the person’s situation, what changed in their lives and what they can afford based on their current income.
paperwork. The doctors advised me that
“For me, everybody wants to stay in
I really should give it up.”
their home, so you look at every avenue
Mr.
Ouellette’s
income
plummeted
due to the closure of his business, and he could no longer make his house payments.
That’s
when
he
called
possible. I provide guidance, and it’s up to them to determine how they are going to change to make the house affordable,” Baril said.
Marjorie Baril, foreclosure and credit
CCFC and Ouellette tried to modify
counselor at Community Concepts
the loan, but as is often the case in the
Finance Corporation.
foreclosure counseling process, in the
“She really helped me. She made sure everything was done the way it was supposed to. She followed up on 10
end Mr. Ouellette decided letting the house go was his best option. He went to court in May 2016.
After the house sold in a short sale, CCFC helped Ouellette and his caretakers, his sister and sister-in law, to find affordable housing in Lewiston. “Everything fell together, and Marjie’s the one I thank,” Ouellette said. “She took my case right on, and she led me all the way, right up to the end.” CCFC helped nearly 350 people with foreclosure counseling in 2016, and the organization expects that number to increase in the coming years.
CCFC Helps Prepare New Homeowners through Homebuyer Education Community
Concepts
Finance
Corporation is a leading provider of Homebuyer Education courses in the state of Maine. CCFC held a total of 14 live classes throughout 2017, serving 163 participants. Online classes hosted through CCFC were even more popular, with 212 individuals participating in the on-demand classes. The classes make some participants eligible for $3500 in down payment and closing cost assistance on the purchase of a home through MaineHousing’s First Home Mortgage Program. The bonus serves as a great incentive for many to take the class, but the benefits extend
beyond monetary assistance.
Homebuyer Education course in July. “After taking this course,
Participants learn how to create a household budget and find resources
I feel much better about exploring homeownership.”
for homeowners. They also gain a full
Many
understanding of the credit report and
helps clarify a process that can be
score requirements for a mortgage.
overwhelming
Independent experts in relevant areas
importance of having a buyer’s agent,
are invited to each class to share their
getting
knowledge.
inspected, and budgeting – advice
“I really enjoyed hearing from the different
guest
presenters.
I
even
participants
the
say
and
the
class
conveys
home
the
independently
many home seekers otherwise may not have been given.
learned tips on how to make my current
The class is a proven tool to help
living space more energy efficient,” said
new
Samantha Hinson of Lewiston, who
homeowners.
homebuyers
be
successful
participated in a homebuyer education
FY15
FY16
% Change
Live class participants
162
163
0.62%
Online participants
128
212
65.63%
290
375
29.31%
51
158
209.80%
925
1846
99.57% 11
Homebuyer Education
Total Participants: New homeowners created Foreclosure and Credit Counseling - total hours
Thanks to all our supporters! Financial Institutions Androscoggin Bank
SIS Bank
Key Bank
Camden National Bank
Machias Savings
Skowhegan Savings Bank
Rainbow Credit Union
Franklin Savings Bank
TD Bank
Northeast Bank
Gorham Savings
Evergreen Credit Union
Katahdin Trust Company
Government Agencies NeighborWorks America CDFI Fund U.S. Department of Housing and Urban Development
CHAPA Citizens Housing and Planning Association Oxford County City of Auburn
Maine Department of Professional & Financial Regulations Maine Housing Authority
HoMEworks
Partners AVCOG Androscoggin Valley Council of Governments
Envision Rumford
Bethel Area Nonprofit Collaborative
Franklin County Chamber of Commerce
Bethel Chamber
Franklin County Chamber of Commerce
Four Directions Native CDFI
Biddeford Saco Area Economic Development Corporation
Fryeburg Business Association
Bridgton Chamber of Commerce
GFDC Greater Franklin Development Council
CEI CDFI
Granite State Development Corp.
Jay Livermore Chamber of Commerce
River Valley Chamber of Commerce
LA Metro Chamber of Commerce
SBDC SBAâ&#x20AC;&#x2122;s Small Business Development Centers
LAEGC Lewiston Auburn Economic Growth Council
SCORE
Maine Preservation Maine Stream Finance CDFI Norway Downtown
SMPDC Southern Maine Planning & Development Council Western Maine Community Action
Oxford Hills Chamber of Commerce
DECD
Foundations & Nonprofits
Special thanks to Katya Danilova of Doroga Media for the photographs of our programs in this report!